Ukraine-Based Internet Fraud Scheme Nets $70 Million

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CryptoMB is part of an aggressive marketing pitch and alleged global fraud scheme run through a Ukrainian telemarketing center named Milton Group, reports the Miami Herald.  A former insider turned whistle-blower told journalists and authorities that the the purported investments are nonexistent, and that the operation’s profits are staggering. The case offers a cautionary tale in the digital era. While regulators in developed nations like the U.S. keep a watchful eye, the internet has been weaponized, and curbing bad actors is akin to a game of Whac-A-Mole.  One self-described victim of Milton-related investments got email scam offers of large sums of money from people claiming to be U.S. Treasury Secretary Steven Mnuchin, Attorney General William Barr and FBI chief Christopher Wray.

Documents and videos smuggled out by the whistle-blower hinted at the scale of the alleged fraud, which last year allegedly netted more than $70 million, in part by having clients download software to computers and phones, thus providing access to their sensitive banking information. Jacob Keselman, Milton’s CEO, when asked by McClatchy’s Europe-based reporting partners about the alleged fleecing of clients, said. “A lot of clients lose money because they don’t understand how it’s working. But when clients lose money, why [do] we need to send back money?”

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